Koss Corporation

Company Name
Koss Corporation
Stock Symbol
KOSS
Class Period
July 12, 2005 to December 21, 2009
Court
Eastern District of Wisconsin
Status
Settled

This action is brought on behalf of all purchasers of Koss Corporation securities during the period July 12, 2005 through December 21, 2009, inclusive (the “Class Period”). The Complaint charges Koss and certain of the Company’s current and former executive officers with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and S.E.C. Rule 10b-5. The Complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose: (1) that certain Company employees had devised and carried out a scheme to defraud investors and divert Company funds potentially exceeding $31 million; (2) that the Company’s financial statements and corporate bank account balances had been manipulated to conceal the diversion of corporate funds; (3) that, as a result, the Company’s financial results were overstated during the Class Period; (4) that the Company’s financial results were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (5) that the Company lacked adequate internal and financial controls; and (6), as a result of the above, that the Company’s financial statements were materially false and misleading at all relevant times.